Explaining & Determining Various Types Of The Financial Data

Question :

Topic- Finance in Management and Leadership

Assessment Brief

Task:

You are required to start a new division within a company of your choice from the FTSE 350. You are asked to examine the financial accounting procedures by company’s executive board to be adopted, if you were constructing a financial plan for the organisation (the plan itself is not required but will be by CW2).

Completion of this assessment will address the following learning outcomes:

1. Discuss the financial context for contemporary organisations including appropriate sources of finance.
2. Briefly analyse how financial information is communicated with stakeholders.
3. Differentiate the key financial data, information and accounting systems to meet and manage organisational objectives.

Structure of report:

• Cover page
• Executive summary
• Table of contents

• Introduction
• Background of the company (company which is selected from the FTSE350) including products and services offered by the company, organisational objectives, and values, etc.
• New Division Description and Objectives
• Feasibility of the New division
• Sources of finance (comparing short vs long term sources of finance and justifying a choice for the new division)
• Porter’s 5, PESTEL, and SWOT analysis of new division
• Stakeholder Management (could be a table)
• Stakeholders of the new division and their financial information needs
• Communicating financial information to stakeholders- refer to a communications model
• Principles and Standards
• Accounting principles recognised in the preparation of the statements
• Applying of samples (screenshots) of company’s’ current reports (to show what statements will be prepared)
• Accounting standards (IFRS)
• Conclusion and recommendations
• Reference list

1. Explaining several users who are interested in the financial information of an enterprise and the reason behind their interest

• Company management- The team requires to understand cash flows, profitability and the liquidity of an enterprise each month in order to makes an operational and the financing decisions for the Anglo American company.
• Competitors- They act as the main users of the final reports of the company for the purpose of evaluating its financial state (Voss, 2019). Through this information, competitor could be able to gain effective strategies for achieving competitive edge.
• Customers- They review the financial information at the time of considering or deciding which of the supplier in selecting for the major contract. This helps in judging a financial ability of the supplier for remaining in the business for longer period to facilitate mandated goods and the services in a contract.
• Employees- An organization might elect in providing its final reports to an employees in addition with the detailed description of the document. This is required by the employees for assessing the performance of an enterprise and is used for increasing level of an employee involvement with gaining an understanding of the company`s business.
• Governments- They are also seen as the major users of the final reports as they review the financial statements of Anglo American company for determining that it is paying off its all the tax obligation and is complying with all standards that are provided by IFRS and GAAP. 
• Investor analyst- An analyst shows a keen interest in the financial statements for deciding that whether Anglo American Firm could be recommended to the clients in respect of making the investment in an entity`s securities.
• Investors- They requires financial information as they are counted as owners of the company and desire for understanding or assessing the performance of the investment made by them (Lakis and Masiulevičius, 2017). This also helps them in making the suitable decisions relating to withdrawing or making further investment.
• Lenders- An institution that is providing the loan to the company needs financial information for estimating an ability of borrower in paying back all the borrowed funds and an interest related payments.

Question :

Topic- Finance in Management and Leadership

Assessment Brief

Task:

You are required to start a new division within a company of your choice from the FTSE 350. You are asked to examine the financial accounting procedures by company’s executive board to be adopted, if you were constructing a financial plan for the organisation (the plan itself is not required but will be by CW2).

Completion of this assessment will address the following learning outcomes:

1. Discuss the financial context for contemporary organisations including appropriate sources of finance.
2. Briefly analyse how financial information is communicated with stakeholders.
3. Differentiate the key financial data, information and accounting systems to meet and manage organisational objectives.

Structure of report:

• Cover page
• Executive summary
• Table of contents

• Introduction
• Background of the company (company which is selected from the FTSE350) including products and services offered by the company, organisational objectives, and values, etc.
• New Division Description and Objectives
• Feasibility of the New division
• Sources of finance (comparing short vs long term sources of finance and justifying a choice for the new division)
• Porter’s 5, PESTEL, and SWOT analysis of new division
• Stakeholder Management (could be a table)
• Stakeholders of the new division and their financial information needs
• Communicating financial information to stakeholders- refer to a communications model
• Principles and Standards
• Accounting principles recognised in the preparation of the statements
• Applying of samples (screenshots) of company’s’ current reports (to show what statements will be prepared)
• Accounting standards (IFRS)
• Conclusion and recommendations
• Reference list

1. Explaining several users who are interested in the financial information of an enterprise and the reason behind their interest

• Company management- The team requires to understand cash flows, profitability and the liquidity of an enterprise each month in order to makes an operational and the financing decisions for the Anglo American company.
• Competitors- They act as the main users of the final reports of the company for the purpose of evaluating its financial state (Voss, 2019). Through this information, competitor could be able to gain effective strategies for achieving competitive edge.
• Customers- They review the financial information at the time of considering or deciding which of the supplier in selecting for the major contract. This helps in judging a financial ability of the supplier for remaining in the business for longer period to facilitate mandated goods and the services in a contract.
• Employees- An organization might elect in providing its final reports to an employees in addition with the detailed description of the document. This is required by the employees for assessing the performance of an enterprise and is used for increasing level of an employee involvement with gaining an understanding of the company`s business.
• Governments- They are also seen as the major users of the final reports as they review the financial statements of Anglo American company for determining that it is paying off its all the tax obligation and is complying with all standards that are provided by IFRS and GAAP. 
• Investor analyst- An analyst shows a keen interest in the financial statements for deciding that whether Anglo American Firm could be recommended to the clients in respect of making the investment in an entity`s securities.
• Investors- They requires financial information as they are counted as owners of the company and desire for understanding or assessing the performance of the investment made by them (Lakis and Masiulevičius, 2017). This also helps them in making the suitable decisions relating to withdrawing or making further investment.
• Lenders- An institution that is providing the loan to the company needs financial information for estimating an ability of borrower in paying back all the borrowed funds and an interest related payments.